American Depositary Receipts for Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker and main provider to firms like Nvidia, closed down 4.3 per cent on Monday after Trump’s feedback.
On Tuesday, TSMC’s Taipei-listed shares got here off earlier lows to finish down 1 per cent, outperforming a 1.2 per cent fall for the broader market.
Taiwan Premier Cho Jung-tai, requested on Tuesday about Trump’s newest feedback, struck a diplomatic tone, saying Taiwan-US ties are based mostly on being like-minded democratic allies.
“I additionally imagine that the foremost US political events have a fully excessive diploma of consensus on the understanding of the US-Taiwan relationship” he stated.
Economic system Minister Kuo Jyh-huei informed reporters he revered the remarks of “worldwide associates”.
“US relations with Taiwan have developed steadily over time, and each events share the identical angle towards Taiwan,” Kuo stated.
Taiwan doesn’t have a proper defence treaty with the USA nevertheless it has billions of {dollars} of weapons on order and has repeatedly stated it’s dedicated to spending extra on its navy.
Taiwan’s authorities rejects Beijing’s sovereignty claims.
Taiwan obtained robust backing from Trump’s 2017-2021 administration, together with arms gross sales, which have continued beneath the federal government of US President Joe Biden.
Trump spoke to then-Taiwan President Tsai Ing-wen in 2016 shortly after he received the election, prompting anger in Beijing, as the USA doesn’t formally recognise Taiwan’s authorities, and glee in Taipei.
However with China’s stepped up military activities around Taiwan, together with a brand new spherical of struggle video games earlier this month, Taipei is nervously watching what a brand new Trump administration would imply, particularly given the tightness of opinion polls.
Within the run as much as the election over the previous three months, two former senior Trump administration officers visited Taiwan – Kelly Craft and Nikki Haley who each served as his ambassadors to the United Nations.
“Trump goes to count on some issues from our associates and allies internationally, significantly associates like Taiwan who’re beneath risk. He’ll count on you to hold your weight as a safety accomplice,” Craft informed a safety discussion board in Taipei final month.
